Strategies employed by business partners international Kenya limited to provide tailor made loans to business women in the small and medium enterprises sector in Nairobi

Abstract

While access to finance is an obstacle to all firms, women have consistently rated it as the single biggest constraint preventing them from growing their businesses. Research findings indicate that female entrepreneurs are fast becoming significant contributors to the African economy as business owners and job creators. This study sought to find out the strategies employed by Business Partners International Kenya limited to provide tailor made loans to business women in the small and medium enterprises sector in Nairobi. The objective of the study was to identify the strategies used by Business Partners International Kenya Limited to provide tailor made loans to business women in the SME sector in Nairobi. The research design used in this study was a case study method. The study used both primary and secondary data. Primary data was collected through an interview guide which was administered to the investment team at BPI - Kenya Limited. Secondary data was also obtained from various policy documents. In this study, the informants were all investment officers with diverse ranks. The company is managed by a specialist investment team who understand the various businesses needs be it a need for finance, information, markets, a network base or mentors. With regard to strategies employed, all the informants confirmed the existence of a strategic plan at BPI Kenya Limited. Potential investments or loans are assessed on the viability of a business. This means that the company does not have the same security requirements that commercial banks do. BPI structures its products to suit women entrepreneurs in the SME sector by advancing unsecured loans where collateral does not exist, while at the same time ensuring the products suit the business cycles and cash flows. In addition, applicants who qualify for investment financing under the BPI fund are able to benefit from a technical assistance program that has been especially set up for this fund.